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Serco loses WA hospital sterilisation work

Serco will no longer provide sterilisation services at Perth's new hospital after surgical equipment was found to be contaminated.

Serco, which still has about 20 contracts for other work at the $2 billion Fiona Stanley Hospital, had already been given two breach notices for its sterilisation services before being stripped of the role on Monday.

In at least one case, bone fragments were found on equipment.

Health Minister Kim Hames said there had been a lack of experience at the senior supervisory level.

"And also perhaps a clinical understanding of the requirements of theatre, and communication and linkage with our staff in the theatre," Dr Hames told reporters.

"They're not satisfied."

Dr Hames said Serco would still provide surgical equipment maintenance and management, "but all of the clinical component ... will now be taken over by the state government".

"I want to restore public confidence in Fiona Stanley," the minister said.

Acting director general of health Bryant Stokes, who is broadly reviewing the hospital to see if there is a systemic problem, said one, maybe two of the 58 complaints about the hospital had put patients at risk.

Suspected Crohn's disease sufferer Jared Olsen, 41, died on March 5 from suspected organ failure after being given the wrong drug at the hospital.

Another incident involved a sterilising cap being dislodged from a heart valve that was inserted into a patient, but the clinician believed there was no reason for concern.

Dr Hames said the equipment that had been contaminated had been intercepted and had not been used on patients.

In hindsight, it was probably a mistake to have engaged Serco for sterilisation duties, he said.

"It was only when we ramped up and all of the theatres opened with all of the doctors needing their own equipment that the results that were coming out weren't adequate."

Serco Asia Pacific managing director of justice, community and health Paul Mahoney said the decision was disappointing and the company had worked hard to make improvements in the service.